Stock market today: Global stocks, Wall St futures rise on hopes for US debt deal

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Asian stock markets followed Wall Street higher on Thursday on hopes U.S. political leaders can reach agreement to avoid a potentially disastrous default on government debt.

A currency trader walks by the screens showing the Korea Composite Stock Price Index , left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Thursday, May 18, 2023. – Global stock markets and Wall Street futures rose Thursday on hopes U.S. political leaders can reach agreement to avoid a potentially disastrous default on government debt.

On Wall Street, futures for the benchmark S&P 500 index and the Dow Jones Industrial Average were up 0.1%.Stocks of companies that get much of their revenue from the federal government rose. Military contractor Lockheed Martin climbed 2.1%. Northrop Grumman gained 2.7%. In Asia, the Shanghai Composite Index gained 0.4% to 3,297.31 and the Nikkei 225 in Tokyo advanced 1.6% to 30,573.93. The Hang Seng in Hong Kong rose 0.9% to 19,727.25.India's Sensex was up less than 0.1% at 61,57.39. New Zealand and Southeast Asian markets also rose.

Investors also worry about the health of global banks following three high-profile failures in the United States and one in Switzerland. Banks have been squeezed by the unexpectedly fast run-up in interest rates, which caused the market prices of bonds on their books to fall.

 

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